Analysis: Monthly Car Payments Surpass $700, the Highest Recorded

Americans have been suffering from rising gas prices, and now, monthly car payments have grown to the highest recorded.

“The average monthly car payment crossed $700 a month earlier this year, the highest on record, according to Cox Automotive/Moody’s Analytics,” NPR reported Saturday.

Cars were so expensive because of a computer chip shortage, the outlet continued.

“When car sales dropped dramatically during the early parts of the lockdown, auto manufacturers slashed orders for the chips,” it said.

Schools and workplaces began meeting online, so consumers bought more electronics for their homes. Therefore, the chip manufacturers began supplying those companies.

In addition, two out of three Americans said hikes in gas prices were causing them hardship, a recent Gallup poll found.

Breitbart News reported last week:

The survey, taken between June 1 and June 20, showed that 67 percent are experiencing hardship, up from 52 percent in April. The percent of Americans who say this hardship is severe jumped to 22 percent from 14 percent.

Gas prices hit new record levels in May in June, culminating on June 14th average price of $5.016. Since then gas prices have retreated but remain very high.

Meanwhile, data reported by the Department of Labor revealed that the price for new and used vehicles increased significantly last year, as Breitbart News reported in March.

Also, “It will not help much to just try to keep the old car running. Car parts prices are up 11.3 percent compared with a year ago. Tires are up 15.4 percent. Bodywork is up 11.9 percent, and repairs are up 6.7 percent,” the outlet continued.

That same month, President Joe Biden encouraged American citizens to buy electric cars to skirt the rising fuel prices, Breitbart News reported at the time.

“The president also urged oil companies to produce more on their existing federal land oil leases, but said he would not back down on environmental standards or the pursuit of green energy,” the article read.